A few clarifications:
During an Extension Period, interest on the Notes will continue to accrue and holders of Notes will be required to accrue interest income for United States federal income tax purposes.
You don't get the interest, but you have to pay tax on it? Yow!
The Notes will not be subject to redemption prior to July 2, 1999[...]
No forced redemption during the run-up...
[...]and will be redeemable on and after such date at the option of the Company, in whole or in part, upon not less than 20 nor more than 60 days' notice to each Holder, at the prices set forth herein plus accrued and unpaid interest, if any, to the redemption date;
They could force it, but they would have to pay accrued interest on a forced redemption...hang on though...
provided that the Notes will not be redeemable following July 2, 1999 and before July 3, 2001 unless the last reported sale price for the Company's Common Stock is at least 130% of the conversion price for at least 20 trading days within a period of 30 consecutive trading days[...]
Oops! 130% of 67.44 = 87.67, needs to have a last sale above $87.67 for 20 out of 30 days. Never mind!
[...]ending within five trading days of the call for redemption.
(moot point) even if it meets that 130% requirement, they can't wait for it to go back down and then force a redemption.
So it looks like all the bond holders are still bond holders, and MU's on the hook for all the interest. |
